Unit 02 Shools of Management Theory

8/12/2019 Unit 02 Shools of Management Theory

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NGO QUY NHAM, MBA

SCHOOLS OFMANAGEMENT THEORY

Ng Qu Nhm, MBAEmail: [email protected]

UNIT 02


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Lecture outline

Early management ideasClassical theoristsBehavioural theoristsQuantitative approachContemporary ideas

Innovation & management theory


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Development of MajorManagement Theories

Management Theories

Historicalbackground

S c i e n t i

f i c m a n a g e m e n t

( 1 9 0 0 s )

G e n e r a

l a

d m

i n i s t r a t i v e

t h e o r i s t s

( 1 9 1 0 s )

O r g a n

i s a t i o n a l b e

h a v

i o u r

( 1 9 3 0 - 1

9 5 0 )

Early advocate Hawthorne studies

Behaviouralscience theorists Human relations

Q u a n t i t a t i v e a p p r o a c h

( 1 9 4 0 s )

Early examplesof management

Adam Smith

Industrialrevolution

O r g a n

i s a t i o n a

l b e

h a v

i o u r

( 1 9 3 0 - 1

9 5

0 )

C o n t e m p o r a r y

v i e w s


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HISTORICAL BACKGROUND

Early examples of managementThe Egyptian pyramidsThe Great Wall of China

Adam Smith: Organisations and society would gain from thedivision of labour , the breakdown of jobs intonarrow and repetitive tasks

Industrial RevolutionThe advent of machine power, massproduction and efficient transportation


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Early management ideas

Robert Owen (1771 1858)Identified the importance of working andsocial conditions for employees.Charles Babbage (1792 1871)Ideas on work specialisation, productionefficiency, incentive and profit-sharing plans.Henry R. Towne (1844 1924)Called for a management science thatwould establish principles of management.


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Early management ideas

Assessing the early contributions:Uncoordinated efforts.Contributions tended to relate to specificproblems.Did not see management as a separate fieldor skill (until Towne).


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SCIENTIFIC MANAGEMENT

the use of the scientific method todetermine the one best way for a jobto be done.It emphasises the scientific study ofwork methods to improve workerefficiency. Important contributions were made by

F. W. Taylor,F. & L. Gilbreth,H. Gantt



Scientific management

Frederick W. Taylor : Four principles of scientific management: 1. Determine the most efficient work

methods.2. Select & train the best.3. Co-operate with workers to ensure

best method is used.

4. Divide work/responsibility betweenworkers & managers.



Scientific management

Frank & Lillian Gilbreth Time & motion studies Human implications of ScientificManagement

Henry Gantt Pay incentives Gantt chart



GENERAL ADMINISTRATIVE THEORISTS

Writers who developed general theories of whatmanagers do and what constitutes goodmanagement practice Henri Fayol

Management is a set of functions:o planning,o organising,o commanding,o coordinating ando controlling

14 principles used by managers to co-ordinatethe organisations internal activities



Henri Fayols Principles of management

Division of workAuthorityDisciplineUnity of

command/directionPrimacy of generalinterestRemuneration

Esprit de corps

CentralisationScalar chainOrderEquity

Low turnoverInitiative



Administrative management

Viewed management as a profession that canbe trained and developedEmphasised the broad policy aspects of top-level management

Contributions

Limitations

Universal prescriptions need qualifications forenvironmental, technological, and personnelfactors


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Bureaucratic management

Promote efficient performance of routineorganisational activitiesEliminate subjective judgement by employees

and managementEmphasises position rather than the person

Contributions


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Bureaucratic management

Limitations

Limited organisational flexibility and slow decisionmakingIgnore the importance of people andinterpersonal relationshipsAccumulation of power can lead to authoritarianmanagementRules may become ends in themselvesDifficult to get rid of the system once established


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QUANTITATIVE MANAGEMENT

the use of quantitative techniques to improvedecision making and organisational effectiveness. Management science... use of sophisticated mathematical models & statisticalmethods.

Operations managementresponsible for managing production & delivery of anorganisations products and services.

Management information systemsfocused on designing & implementing computer-basedinformation systems for use by management.


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Quantitative management

Developed specific mathematical methods of problemanalysisHelped managers select the best alternative among a set

Contributions

LimitationsModels neglect non-quantifiable factorsManagers not trained in these techniques and may not trustor understand the techniques outcomes

Not suited for non-routine or unpredictable managementdecisions


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BEHAVIOURAL THEORISTS

Perspective on management emphasising theimportance of attempting to understandvarious factors affecting human behaviour inorganisations .


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Behavioural theorists

Early theorists: Hugo MunsterbergCreating optimal psychological conditions, behaviourshaping

Mary Parker FollettImportance of group functioningHawthorne studiesImportance of supervisory style


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Human Relations

Promotes employees effectiveness throughunderstanding of individual, group, andorganisational processes.Stresses relationships among employees,

managers, and the work they perform for theorganisation.Assumes employees want to work and cancontrol themselves (Theory Y)

Abraham Maslow: Hierarchy of NeedsDouglas McGregor: Theory X & Y

Key concepts

Contributors


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Human Relations

Contributions

Limitations

Some approaches ignored situational factors suchas the environment and the organisationstechnology

Increased participation, greater autonomy,individual challenge and initiative, and enriched

job may increase performanceRecognised the importance of developing humanresources


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Organisationl Behaviour

Productivity and employee behaviour areinfluenced by the informal work groupCohesion, status, and group norms determineoutput.Managers should stress employee welfare,motivation, and communicationSocial needs have precedence over economicneeds.

Key concepts


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Organisationl Behaviour

Contributions

Limitations

Ignored workers rational side and the formalorganisations contribution to productivity

Research findings later overturned the simplisticbelief that happy worker are always moreproductive

Psychological and social processes influenceperformanceMaslows hierarchy of needs


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CONTEMPORARY VIEWPOINTS

Systems theory Approach based on the idea thatorganisations can be viewed as systems. Contingency theory

Viewpoint arguing that appropriatemanagerial action depends on the particularparameters of the situation.


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Systems theory

Organisation is viewed as a open systemManagement must interact with theenvironment to gather inputs and return theoutputs of its production

Organisational objectives must encompass bothefficiency and effectivenessOrganisations contain a series of subsystemsThere are many roads to the same outcome

Synergies exist where the whole > the sum ofthe parts

Key concepts


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Systems theory

Contributions

LimitationsDoes not provide specific guidance on thefunctions and duties of managers

Recognised the importance of the organisationsrelationship with the external environment


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Contemporary viewpoints

Theory Z Concept combining positive aspects ofAmerican and Japanese management into amodified approach aimed at increasingmanagerial effectiveness while remainingcompatible with the norms and values ofAmerican society and culture. Total Quality approach

Approach highlighting collectiveresponsibility for product and servicequality, and encouraging individuals to worktogether to improve quality.


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Promoting innovation

Each management viewpoint provides acontribution to managing innovation:Classical

BehaviouralQuantitativeContemporary


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Lecture summary

Early management ideasGeneration of ideas leading to identificationof management as a significant field ofinquiry.

Classical theoristsEmphasised finding ways to more efficientlymanage work and organisations.

Behavioural theoristsEmphasised the importance of trying tounderstand factors affecting humanbehaviour in organisations.


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GO Q A A

Lecture summary

Quantitative approachFocuses on mathematics, statistics and information aidssupporting managerial decision making andeffectiveness.

Contemporary ideasViews of organisations as systems, importance ofcontingency factors & amalgamating Japanese &American management practices.

Innovation & management theoryEach approach provides insights, knowledge & practiceregarding the management of innovation inorganisations .

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Unit 02 Shools of Management Theory